Atos Origin Year 2001 1st Half Results 1st Half 2001 Results - PowerPoint PPT Presentation

1 Atos Origin Year 2001 1st Half Results 1st Half 2001 Results September 2001

Agenda 2 • 1st HALF 2001 SUMMARY OF OPERATIONS • 1st HALF 2001 SUMMARY OF OPERATIONS • MERGER IMPLEMENTATION • VISION • APPENDICES 1st Half 2001 Results September 2001

Atos Origin achievements 3 Delivering merger benefits • Merger completed in record time • EUR130 million revenues disposed – Disposal of contact center business to SNT – Other disposals in Brazil, Nordic, Germany • Significant commercial wins • Financial results on track 1st Half 2001 Results September 2001

Financial performance 4 Atos Origin delivers its commitments to the market In Euro Million 1H 2001 1H 2000 % Change Revenue 1,518 1,402 +8.3% Income from Operations 128.9 82.2 +56.8% Income from Operations % 8.5% 5.9% +2.6 pts Net Income after Goodwill 67.3 28.5 +136% Average Shares # Outstanding (mn) 43.8 43.7 EPS before Goodwill (Euros) 1.80 0.84 +115% EPS after Goodwill (Euros) 1.54 0.65 +136% Proforma, on-going basis 1st Half 2001 Results September 2001

Balance sheet & 5 cash flow highlights Restructuring compensated by operational cash flow • Net debt of EUR113 million at the end of June 2001, stable from end 2000 • Strong underlying cash flow from operations (EUR169 M in 1H 2001) • Working capital reduced to 8% of revenue (annualized) • Commitment to pay EUR163 million for KPN datacenter • Higher gearing but interest cover remains very high (Net debt < 1x EBITDA 2001) 1st Half 2001 Results September 2001

Global presence 6 Revenue per region In Euro Million 1H 2001 1H 2000 % Change % of total France 540 455 18.6% 36% Netherlands 381 337 13.2% 25% Other EMEA 442 433 2.0% 29% Americas 118 138 -14.5% 8% Asia / Pacific 37 39 -4.1% 2% Total 1,518 1,402 8.3% 100% * Proforma, on-going basis • Strong growth in France and The Netherlands • Focus on reorganization in UK, Germany, Italy and the US • Impact of the US economic slowdown in Americas and Asia Pacific 1st Half 2001 Results September 2001

Merger and Acquisition Policy 7 Criteria for Success • There must be strong complementarity / fit • Clear strategic intent / clear disposal strategy • Management structure must be clear (no compromises) • Communication (internally and externally) • Speed of implementation 1st Half 2001 Results September 2001

Consulting & Systems Integration 8 Successful restructuring in Systems Integration % change In Euro Million 1H 2000 1H 2001 • Growth in Q2 up to +8% from +1% in Q1 Revenue 742.1 775.5 +4.5% Income from operations 48.6 66.3 +36.2% • Strong growth in France Income from (+19%) and The Netherlands operations % 6.5% 8.5% +2.0 pts (+12%) Proforma, on-going basis Other EMEA Netherlands 39% • Strong increase in profitability 26% due to better utilization and France restructuring actions 23% Asia Pacific Americas 2% 10% 1st Half 2001 Results September 2001

Managed Services 9 Surge in Managed Services performance In Euro Million 1H 2001 % change 1H 2000 • Accelerating trend toward outsourcing by large Revenue 463.7 528.0 +13.9% European firms Income from operations 42.2 60.8 +44.1% Income from • Economies of scale and operations % 9.1% 11.5% +2.4 pts datacenter rationalization Proforma, on-going basis produced increased margin Netherlands 34% France • Closer monitoring of 33% profitability by client Other EMEA 22% Asia Pacific Americas 4% 7% 1st Half 2001 Results September 2001

On-line Services 10 On-line Services affected by telecoms and internet slowdown In Euro Million 1H 2001 % change 1H 2000 • 10%+ growth in payment and Revenue 196.3 214.5 +9.3% CRM services Income from operations 22.5 23.4 +4.0% Income from • 21% growth in internet services operations % 11.4% 10.9% -0.5 pts (+6% including pass-through) Proforma, on-going basis • Profitability impacted by the Contact Center activity Other EMEA 13% France 87% 1st Half 2001 Results September 2001

KPN outsourcing contract 11 One of the largest European outsourcing contracts • Minimum revenues of EUR 1.1 billion over 6 years • Taking control of 7 data centers • More than 1,000 employees to transfer to Atos Origin • Contract will increase Managed Services revenues by over 20% • KPN end user services and KPN software house • Building up commercial relationship with KPN • Revenues in the Netherlands could increase to over EUR 1 billion 1st Half 2001 Results September 2001

Large accounts 12 Successful large account program • Large accounts grew by 14% in 1H 2001 • Philips revenues lower but remaining ahead of budget • Remaining 26 accounts grew by more than 25% 1st Half 2001 Results September 2001

Backlog 13 Recent wins in Managed Services lift backlog • Significant strengthening of Managed Services backlog • Systems integration building up order book • Cover for the remaining of year at 85% as of June 30 1st Half 2001 Results September 2001

Key financial targets 14 Outlook for 2001 2001 E Proforma, on going basis Annual revenue growth 10% Operating margin >8% 1st Half 2001 Results September 2001

1st half 2001 wins 15 Region Customer Description Australia Capral Aluminium E-mail Hosting Austria Chemson WAN Services Belgium Tabacofina SAP, Archiving Europe Philips C&SI and Managed Services contracts France André Global outsourcing France Intermarché Loyalty scheme roll out France Renault Web site hosting Germany RS Components Desktop Services Germany Schering PG Mainframe Outsourcing 1st Half 2001 Results September 2001

1st half 2001 wins 16 Region Customer Description Netherlands / Belgium Euronext Partnership extension Netherlands KPN Datacenter outsourcing Netherlands Shell SAP Management Netherlands CAN Outsourcing Spain Repsol YPF Systems integration Singapore MOOG QAD implementation UK United Biscuits SAP Support UK Uniq ISIS Outsourcing USA Medquist CRM - Organisation and IT Consulting 1st Half 2001 Results September 2001

Agenda 17 • 1H 2001 SUMMARY OF OPERATIONS • 1H 2001 SUMMARY OF OPERATIONS • MERGER IMPLEMENTATION • MERGER IMPLEMENTATION • VISION • APPENDICES 1st Half 2001 Results September 2001

Commercial synergies 18 Ramping up commercial synergies • Accelerating top line growth • Atos Euronext expansion in Belgium and The Netherlands • Focus on large account program • Sales and marketing strengthened to accelerate cross selling 1st Half 2001 Results September 2001

Comprehensive Sales & Marketing Strategy 19 Market Managers Banking & CPG & High-Tech & Process & Finance Retail Telecoms Industries Domain Managers Large Account Directors Management Enterprise eBusiness Outsourcing Management Enterprise eBusiness Outsourcing Consulting Solutions Solutions Solutions Consulting Solutions Solutions Solutions 1st Half 2001 Results September 2001

Restructuring and cost savings 20 Strong surge in profitability due to restructuring • Major restructuring program in loss-making territories • Corporate costs reduced from 3.2% in 2000 to 1.4% in 1H 2001 • Indirect costs rationalization program • Datacenter reorganization in progress • Premises rationalization well under way • Disposal program substantially completed • Purchasing organization in place 1st Half 2001 Results September 2001

Restructuring country focus 21 • UK – Reorganization 100% complete – Site rationalization 75% complete (3 sites closed) • Germany – Reorganization 50% complete – Site rationalization 50% complete (5 sites closed) • North America – Reorganization 80% complete – Site rationalization 100% complete (4 sites closed) • Brazil – Reorganization almost 100% complete – Site rationalization 100% complete (4 sites closed) 1st Half 2001 Results September 2001

Agenda 22 • 1H 2001 SUMMARY OF OPERATIONS • 1H 2001 SUMMARY OF OPERATIONS • MERGER IMPLEMENTATION • MERGER IMPLEMENTATION • VISION • VISION • • APPENDICES APPENDICES 1st Half 2001 Results September 2001

Vision 23 Clear goals and objectives • Focus on a balanced mix of design, build and run activities • Capitalize on vertical industry sector knowledge • Develop a focused management consulting practice • Focus on customers • Leverage strong human resources management • Build on Global presence 1st Half 2001 Results September 2001

24 Conclusions • Merger completed in record time • Financials on track • International team in place • Global company ready for growth and further acquisitions 1st Half 2001 Results September 2001

Agenda 25 • 1H 2001 SUMMARY OF OPERATIONS • 1H 2001 SUMMARY OF OPERATIONS • MERGER IMPLEMENTATION • MERGER IMPLEMENTATION • VISION • • APPENDICES APPENDICES 1st Half 2001 Results September 2001